Executive Summary
The Glimpse Group’s QQ4 2024 results reflect a deliberate strategic pivot toward Spatial Core, its enterprise-scale spatial computing, cloud, and AI-driven software platform led by Brightline Interactive. Quarterly revenue of $1.73 million for Q4 2024 underscored a continuing structural shift away from legacy, immersive marketing-focused customers toward recurring, enterprise software deployments. Gross margin for the quarter stood at 69.0%, delivering a higher operational efficiency on a lower revenue base, while the company posted an operating loss of $4.03 million and an EBITDA loss of $1.62 million. Management trades a near-term revenue decline for a longer-term margin of safety and growth through multi-year DoD and enterprise pipelines, with Q1 FY25 revenue expected to be “significantly higher than Q4 FY24” and quarterly targets of over $3 million for Q2 and Q3 FY25. The balance sheet remains cash-positive with net cash of approximately $1.31 million after considering debt, and no outstanding corporate debt, providing financial flexibility to fund the growth runway. The company also disclosed strategic actions, including divestitures of non-core entities and ongoing exploration of strategic options to maximize shareholder value in light of Nasdaq price compliance challenges. While the path to profitability is not assured in the near term, the core thesis rests on Spatial Core’s AI-enabled software traction, a layered government and enterprise contract funnel, and a potential re-rating if contract signings materialize and recurring software ARR solidifies.
Key Performance Indicators
QoQ: -8.88% | YoY:-40.61%
QoQ: 15.18% | YoY:-39.04%
QoQ: -112.60% | YoY:79.15%
QoQ: -158.99% | YoY:79.27%
QoQ: -167.56% | YoY:81.68%
Key Insights
Revenue (Q4 2024): $1.727 million, down 41% YoY from $2.929 million in Q4 2023. Gross margin: 69.03% (Q4 2024) vs 68% in FY23. Operating income: -$4.029 million; EBITDA: -$1.622 million; Net income: -$3.994 million; EPS: -$0.24. FY24 revenue: approximately $8.8 million, down about 35% YoY. Gross margin for FY24: ~67% (versus ~68% FY23). Adjusted EBITDA for FY24: about -$4.6 million (versus -$6.4 million in FY23). Cash flow: Net cash used in operating activities -$0.927 million; Free cash flow -$...
Financial Highlights
Revenue (Q4 2024): $1.727 million, down 41% YoY from $2.929 million in Q4 2023. Gross margin: 69.03% (Q4 2024) vs 68% in FY23. Operating income: -$4.029 million; EBITDA: -$1.622 million; Net income: -$3.994 million; EPS: -$0.24. FY24 revenue: approximately $8.8 million, down about 35% YoY. Gross margin for FY24: ~67% (versus ~68% FY23). Adjusted EBITDA for FY24: about -$4.6 million (versus -$6.4 million in FY23). Cash flow: Net cash used in operating activities -$0.927 million; Free cash flow -$0.939 million; Capex $12k. Cash and cash equivalents: $1.848 million; Accounts receivable: $0.700 million; Total debt: $0.544 million; Net debt: -$1.304 million (net cash). Current ratio: 1.45; Quick ratio: 1.45; Cash burn and OpEx base: approximately $3 million per quarter pre-revenue. Management guides to Q1 FY25 revenue being materially higher than Q4 FY24 and Q2/Q3 FY25 each exceeding $3 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.73M |
-40.61% |
-8.88% |
| Gross Profit |
1.19M |
-39.04% |
15.18% |
| Operating Income |
-4.03M |
79.15% |
-112.60% |
| Net Income |
-3.99M |
79.27% |
-158.99% |
| EPS |
-0.24 |
81.68% |
-167.56% |
Key Financial Ratios
operatingProfitMargin
-233%
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.06
Management Commentary
STRATEGY/PRODUCT TRANSITION: Spatial Core is the growth engine and strategic focus, with management signaling that substantial new contract momentum could materialize in the near term. Quote: “Spatial Core is our strategic focus and growth engine.” The company projects multiple multimillion-dollar opportunities in Spatial Core with government and enterprise clients, signaling a transition to recurring software revenue. Context: Sets the framework for a higher-margin, ARR-driven model as DoD and enterprise deployments scale. SIGNIFICANT CONTRACT PIPELINE: DoD and government work is central to the forward-looking revenue trajectory. Quote: “short-term aggregate value for these contracts is in the $5 million to $10 million range,” with a portion expected to be signed by year-end 2024. Context: This underpins the bulls’ view on the revenue ramp as government budgeting cycles progress. PARTNERSHIPS/MOAT: The Bassline of Spatial Core includes non-exclusive but strategically aligned relationships with NVIDIA, Microsoft, and AT&T, plus Brightline and Cesium. Quote: “Brightline, Cesium and NVIDIA teamed up at the GEOspatial INTelligence Symposium 2024 to introduce Brightline's Spatial Core…” Context: Signals a competitive moat built on ecosystem collaboration and AI-enabled workflows rather than pure exclusivity. FINANCIAL OUTLOOK/LIQUIDITY: Management highlighted a cash-flow-positive trajectory in the near term and no need for capital raises, supported by existing contracts. Quote: “we expect to generate positive cash flows going forward, we believe that there is a sharp disconnect between our intrinsic value and our current public company valuation.” Context: Investors should weigh the potential upside from cash generation against execution risk. Nasdaq compliance and strategic reviews: The company disclosed Nasdaq non-compliance with a $1 minimum bid price and indicated it is evaluating strategic options to maximize shareholder value, including the potential use of an unutilized share buyback pool and other measures. Quote: “we have until March 3, 2025 to cure this deficiency…Board of Directors is exploring strategic options to maximize shareholder value.” Context: Adds a catalyst risk/optionality overlay for equity investors. DIVESTITURES: Two non-core businesses have been divested with zero value recognized on the balance sheet, implying potential future upside if those entities are successful. Quote: “we divested some of our businesses…valued as nothing on our balance sheet.” Context: Indicates balance sheet conservatism but also latent upside if divested units perform. ARR/LONG-HORNS: The management emphasized long-term ARR growth as the ultimate objective; the Q&A reinforced a preference for long-cycle ARR over immediate revenue acceleration. Context: Signals a strategic intent that may require patience from investors.
Spatial Core is our strategic focus and growth engine.
— Lyron Bentovim
We expect to be cash flow positive and increase our cash balance between now and year-end 2024 and beyond without the need for capital raise.
— Lyron Bentovim
Forward Guidance
Near-term revenue recovery is expected to come from Spatial Core and related government/enterprise contracts, with Q1 FY25 projected to be “significantly higher” than Q4 FY24 and each of Q2 FY25 and Q3 FY25 anticipated to exceed $3 million in quarterly revenue. Gross margins are expected to stay within a 60%-70% range as the mix shifts toward software subscriptions and cloud-enabled services. The company maintains a cash-positive stance with no debt and a plan to enhance cash balances through existing contracts, aligning with a pathway to positive quarterly free cash flow in Q2 and Q3 FY25. Key risks include government budget timing and procurement cycles, execution risk in scaling Spatial Core, Nasdaq compliance, and potential dilutionary considerations from strategic alternatives. Monitoring metrics for investors should include: (1) weekly/monthly contract wins and timing for Spatial Core and DoD CRADAs; (2) quarterly ARR progression and renewal/expansion rates; (3) cash burn rate stabilization and eventual cash flow break-even; (4) progression of divested entities’ value realization; and (5) updates on Nasdaq cure status and any strategic transactions.